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Synopsis

Change can be difficult. But effective management of the change process can lead to long-lasting improvements for both your business and its people. From principles to implementation, use our Change Management (Part 2) deck to welcome a culture of positive evolution. Make adjustments inside your organization to meet your individual success criteria, whether that's higher profitability or elevated brand image.

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Questions and answers
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Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. It is different from other business management strategies in that it focuses more on the people side of change rather than processes or tasks. Other strategies like operational management focus on improving efficiency in processes, while strategic management is about setting and achieving long-term business goals. Change management, on the other hand, is about managing the human elements of these changes and ensuring that changes are implemented smoothly and effectively.

A company can create a culture of positive evolution through change management by first acknowledging that change is necessary and inevitable. This can be done by communicating the need for change to all stakeholders and involving them in the change process. The company should also provide training and support to help employees adapt to the changes. Additionally, the company should regularly review and adjust its change management strategies to ensure they are effective and meet the company's success criteria, such as higher profitability or an elevated brand image.

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Slide highlights

Learn the five steps that make up a successful change management model, from assess to sustain.(Slide 2)

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Use a change readiness checklist to determine whether your team is ready for the challenges ahead and set positive morale.(Slide 21)

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Create and implement a change management plan to determine the cost, efforts required, and level of impact of your changes.(Slide 23)

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Questions and answers
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The change management model discussed here is a five-step process that includes assessing the change, preparing for it, planning, implementing, and sustaining the change. This model is comprehensive and focuses on readiness and planning. Comparatively, other models like Kotter's 8-Step Change Model, also includes steps like creating a sense of urgency and building a guiding coalition, which are more focused on people and leadership. Lewin's Change Management Model, on the other hand, is a simple three-step process of unfreeze, change, and refreeze, which is more focused on the change process itself. Each model has its strengths and is suitable for different types of changes.

The change management model aligns with business improvement strategies in several ways. Firstly, it helps in assessing the current state of the business and identifying areas that need improvement. Secondly, it aids in planning and implementing changes that will lead to improvement. This includes determining the cost, efforts required, and level of impact of the changes. Lastly, it ensures the sustainability of these changes, thereby leading to long-lasting improvements.

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Outcome

The success of any change management program is hugely dependent on the players involved. It's not just about the success of individual projects, activities, and tasks, but your team's level of understanding, collaboration, and morale.

That's why excellent communication and guidance are paramount. Use the tools from this deck to assess, prepare, plan, implement, and sustain positive changes.

Application

Types of change managment

We begin with a few common types of change management you can conduct: systemic, project, or organizational. systemic changes could pertain to the organizational architecture, IT applications, or infrastructure that underpin your business. For example, maybe you need to plan a new software update. Project changes could be relevant to management, schedules, and project timelines. Organizational changes involve processes and managing team members. This could be organization-wide or departmental changes.(Slide 3)

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Yes, there are several examples of successful change management in businesses. One of the most notable is the transformation of IBM in the early 1990s. Faced with a rapidly changing technology market and internal inefficiencies, IBM underwent a major organizational change under the leadership of CEO Lou Gerstner. This included a shift from a product-centric to a customer-centric organization, significant cost reductions, and a focus on developing new capabilities in areas such as IT services and software. Another example is the turnaround of British Airways in the 1980s. Under the leadership of CEO Colin Marshall, British Airways transformed its culture and customer service approach, leading to significant improvements in its financial performance and brand image.

There are several strategies that can be used to effectively manage change in an organization. First, it's important to clearly communicate the reasons for the change and how it will benefit the organization. Second, involve employees in the change process to ensure they feel valued and heard. Third, provide training and support to help employees adapt to the change. Fourth, monitor the change process and make adjustments as necessary. Finally, celebrate successes along the way to keep morale high.

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Communications

Change of any kind creates resistance, which is why it is important to get everyone on board and motivated with a change. You could communicate a change face-to-face with an all-hands or one-on-one meeting, through an announcement from the executive team, or simply a published FAQ or company-wide email. Sometimes a change is also signaled from external sources, like regulations or legislations that compel the business to rethink how it operates.(Slide 4)

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Company-wide emails or meetings can be effective tools in managing change within a business. They provide a platform for leaders to communicate the reasons for the change, the benefits it will bring, and how it will be implemented. This helps in reducing resistance and confusion, as employees are more likely to support change if they understand its purpose and impact. Furthermore, these communication methods allow for transparency and open dialogue, where employees can ask questions and voice their concerns, fostering a sense of involvement and ownership in the change process.

Implementing change management in a business can have several potential benefits. Firstly, it can help to minimize resistance to change by ensuring that all stakeholders are on board and understand the reasons for the change. This can lead to smoother transitions and less disruption to the business. Secondly, change management can help to ensure that changes are implemented effectively and efficiently, reducing the risk of mistakes or oversights. Thirdly, it can help to ensure that the business is able to adapt to external changes, such as new regulations or legislation, in a timely and effective manner. Finally, effective change management can lead to long-lasting improvements for both the business and its people, fostering a culture of continuous improvement and evolution.

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Gap analysis

Tools like Gap Analysis help you determine what your organization needs to accomplish to complete a change. In a table format, list the "what, where, who, and how" of your current state and desired future state. The change needed is the gap between the two. The action to close the gap entails steps that are needed.

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A company like Amazon could benefit from using Gap Analysis in their change management process. For instance, if Amazon wants to reduce its delivery time, it can use Gap Analysis to identify the current state (e.g., average delivery time is 2 days) and the desired future state (e.g., average delivery time is 1 day). The gap is the difference between the two states. Amazon can then develop action steps to close the gap, such as investing in more delivery trucks or optimizing delivery routes.

Yes, there are numerous case studies that demonstrate the effectiveness of Gap Analysis in change management. For instance, a multinational corporation used Gap Analysis to identify discrepancies between their current operations and their desired future state. The analysis revealed gaps in their processes, systems, and skills, which they then addressed through targeted interventions. This resulted in improved efficiency and productivity. However, it's important to note that the success of Gap Analysis largely depends on the accurate identification of the current and future states, and the commitment to take necessary actions to close the identified gaps.

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For instance, let's say your current state is high employee turnover. Your desired future state is keeping great talent on the team as long as possible with higher overall employee satisfaction.

The gap is the distance between turnover and retention. One action you could take would be to provide more educational resources to develop employee capabilities and make them feel that their career isn't stagnating.

As a result, employees will feel it's worth their time to stay at the company because they are getting paid to learn and be better prepared to advance their careers when the right opportunity strikes in the future.(Slide 7)

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Forces,barriers,and resistance

External forces of change can compel change management out of the blue. Everything from the nature of the workforce, to technology, to economic shocks, and changing social trends can lead to the need for change. For example, recent global events have normalized remote work as a viable option. As a result, systemic changes are needed to ensure that employees have the tools and software to do their work. And for some industries that handle sensitive data, more measures would need to be implemented to prevent security breaches. Even though internal personnel are the key players who carry out this change, the reason why it took place was due to external circumstances.(Slide 8)

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Some examples of external circumstances that have led to the implementation of change management include changes in the nature of the workforce, advancements in technology, economic shocks, and evolving social trends. For instance, the recent global pandemic has normalized remote work, necessitating systemic changes to ensure employees have the necessary tools and software to perform their tasks. In industries handling sensitive data, additional measures had to be implemented to prevent security breaches. These changes were driven by external circumstances, even though internal personnel are the key players in executing the change.

Internal personnel are key players in carrying out change management because they are the ones who implement the changes on a day-to-day basis. They understand the intricacies of their roles and how changes will affect their work. They can provide valuable feedback on proposed changes and help refine them. They are also crucial in driving the acceptance of change within the organization, as they can influence their peers' attitudes towards the change. Without the active participation of internal personnel, change management efforts are likely to fail.

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On the other hand, internal forces of change can come from changes in key leadership, recruiting impediments, or pressure from shareholders.(Slide 9)

Human beings tend to seek comfort in the status quo. Barriers to change, such as mental resistance, lack of executive commitment, or unrealistic expectations, can be difficult to overcome until they are addressed. For instance, a leader might have unrealistic expectations on how fast the change can be implemented. This sentiment could lead to a lack of appreciation and acknowledgment for the work that employees put in, and negatively impact everyone's drive to continue.(Slide 10)

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Questions and answers
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Yes, there are numerous case studies that demonstrate the effectiveness of change management. For instance, IBM's turnaround in the 1990s under the leadership of Lou Gerstner is a classic example of successful change management. Gerstner shifted IBM's focus from hardware to services, which required significant changes in the company's operations and culture. Another example is Ford's turnaround under Alan Mulally in the late 2000s. Mulally implemented a change management plan called 'One Ford' that helped the company recover from the brink of bankruptcy. These case studies highlight the importance of effective change management in achieving business success.

Addressing barriers to change enhances a business's strategy by ensuring smoother implementation of new initiatives. It helps in managing resistance, securing executive commitment, and setting realistic expectations, which are crucial for successful change management. By addressing these barriers, businesses can maintain employee morale and drive, leading to more effective and efficient achievement of strategic goals.

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Use a feedback form to determine where the areas of resistance are at your organization. Perhaps you have a feeling there is a lack of understanding of the purpose of change. Or maybe it's a lack of support from leadership. Perhaps the change has a high level of impact on daily work patterns. Survey your team and rate their responses from strongly agree to strongly disagree. You can report these findings in a table format.(Slide 11)

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The findings from a feedback form can be used to improve the change management process in several ways. Firstly, they can help identify areas of resistance within the organization. Understanding these areas can help management address them directly, either through communication, training, or other forms of support. Secondly, feedback can highlight where there may be a lack of understanding about the purpose of change, allowing for targeted education and clarification. Lastly, feedback can indicate how the change is impacting daily work patterns, providing insight into how the change can be better managed to minimize disruption.

A feedback form plays a crucial role in the change management process. It helps to identify areas of resistance within the organization. By surveying the team, you can gauge their understanding of the purpose of change, their level of support from leadership, and the impact of the change on their daily work patterns. The responses can be rated from strongly agree to strongly disagree and reported in a table format. This information can then be used to address concerns and improve the change management process.

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Force fleld analysis

A force field analysis assesses factors that influence a situation. When used in the context of change management, it compares the driving forces that encourage change against the restraining forces that hold it back. For instance, your customers' demand for new products and an increased production speed could encourage change. However, the loss of staff over time (as a result of more efficient production) and the environmental impact to create a new product could hold you back. But when you tally up the scores at the top, you find the benefits still outweigh the barriers in this scenario. Ultimately, you decide it's worthwhile to upgrade the facility equipment and make new products.(Slide 16)

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Questions and answers
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While the content provided does not mention specific case studies, force field analysis is a widely used tool in change management. It helps organizations identify the driving and restraining forces in a situation, allowing them to make informed decisions. For instance, a company might identify customer demand and potential for increased production as driving forces for change, while staff turnover and environmental impact might be seen as restraining forces. By weighing these factors, the company can decide whether the benefits of change outweigh the potential drawbacks. However, for specific case studies demonstrating this, I would recommend looking into business and management journals or publications.

Force Field Analysis is a change management framework that assesses factors influencing a situation. It compares driving forces encouraging change against restraining forces holding it back. Other change management frameworks like ADKAR, Kotter's 8-Step Model, or Lewin's Change Management Model have different approaches. ADKAR focuses on individual change, Kotter's model emphasizes a step-by-step approach to change, and Lewin's model views change as a process of unfreezing, changing, and refreezing. Each framework has its strengths and weaknesses, and the choice depends on the specific context and needs of the organization.

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Change transition curve

Every change follows a familiar pattern. The change transition curve begins with uncertainty and then heads into a period of skepticism as productivity wanes. Luckily, this temporary drop usually bottoms out. To help with this transitional period, the organization can create a sense of urgency and support with a guiding coalition. Again, this all goes back to the importance of team communications. As skepticism bottoms out, empower broad action and recognize the short-term wins through the exploration phase. Finally, incorporate the change into the company-wide culture to create a lasting commitment.(Slide 19)

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Questions and answers
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Change management can lead to long-lasting improvements for a business by effectively managing the transition process. This involves creating a sense of urgency and support, empowering broad action, recognizing short-term wins, and incorporating the change into the company-wide culture. This process helps to mitigate uncertainty and skepticism, leading to improved productivity and a positive evolution of the business culture.

Several strategies can be used to manage the period of skepticism during change. Firstly, creating a sense of urgency can help to motivate individuals to participate in the change. Secondly, forming a guiding coalition or a group of influential people who support the change can help to drive the change forward. Thirdly, empowering broad action by removing obstacles and changing systems that undermine the change vision can help to enable the change. Lastly, recognizing and celebrating short-term wins can help to maintain momentum and motivation for the change.

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Cost

It takes time to implement a change, and time is money. Determine your change management cost in a table format that takes the timeframe into account. Assess how long each task will take across a four-quarter period and the total costs associated with the change over the course of a fiscal year.(Slide 26)

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Questions and answers
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The process of assessing the duration of each task in change management across a four-quarter period involves several steps. First, identify all the tasks that need to be completed for the change management process. Then, estimate the time required to complete each task. This can be done by using historical data, consulting with team members, or using project management tools. Once you have the estimated time for each task, you can distribute these tasks across the four quarters. Remember to take into account the dependencies between tasks and potential delays. Finally, monitor the progress of the tasks and adjust the schedule as necessary.

Time is crucial in the implementation of change management for several reasons. Firstly, it allows for proper planning and preparation, which are key to minimizing resistance and ensuring a smooth transition. Secondly, it provides a framework for monitoring progress and measuring success. Lastly, understanding the time aspect can help in estimating the costs associated with the change, which is important for budgeting and resource allocation.

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Evaluation

As part of "aftercare" and continuous improvement, use a questionnaire to learn what went well, what went wrong, and what could be improved next time. If you're answering a question like, "What has enabled you to sustain the changes?" The answer could be "Every few weeks, we saw incremental improvements in productivity and performance. This provided positive reinforcement that we're on the right path and motivated us to keep going."(Slide 27)

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Questions and answers
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The use of questionnaires in the Change Management framework contributes to continuous improvement by providing a structured way to gather feedback and insights. This feedback can highlight what went well, what went wrong, and what could be improved next time. This information is crucial for learning and making necessary adjustments to enhance future change initiatives. It also helps in identifying incremental improvements in productivity and performance, providing positive reinforcement that the change is on the right path.

Common challenges in applying the Change Management framework include resistance to change, lack of effective communication, inadequate leadership and support, and lack of a clear vision or strategy. These can be overcome by:

1. Encouraging open and honest communication about the change and its impact.
2. Providing strong leadership and support throughout the change process.
3. Clearly defining the vision and strategy for change.
4. Providing training and resources to help employees adapt to the change.
5. Regularly reviewing and adjusting the change strategy based on feedback and results.

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Share feedback from your questionnaire in a bar graph format, organized by those who strongly agree to strongly disagree with a series of questions. For instance, you might ask how your employees feel about the effectiveness of leadership, or if your company has a strong focus on customers. This feedback will help you analyze how the implemented changes are perceived by your team.(Slide 28)

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The perception of implemented changes can be analyzed through employee feedback by conducting surveys or questionnaires. These should include questions that directly relate to the changes implemented. The feedback can then be organized and analyzed, for instance, in a bar graph format, showing the range of responses from those who strongly agree to those who strongly disagree. This will provide a visual representation of how the changes are perceived by the employees. It's also important to consider open-ended questions to capture qualitative data and insights.

A company's focus on customers can be evaluated through employee responses by conducting surveys or questionnaires. These can include questions about the company's customer-centric policies, practices, and culture. Employees' responses can provide insights into how well the company is focusing on customers from their perspective. For instance, if employees feel that the company prioritizes customer satisfaction and regularly seeks to improve customer experiences, it indicates a strong customer focus. Conversely, if employees feel that the company does not prioritize customers, it may suggest a need for improvement in this area.

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